Bankruptcy News

WestMountain Gold Extension Sought

WestMountain Gold filed with the U.S. Bankruptcy Court a second motion to extend the exclusive period during which the Company can solicit plan acceptances through and including December 26, 2017. The motion explains, "The Debtors have taken a number of actions in this case to further the reorganization and have moved diligently to reorganize with the filing of a Plan of Reorganization. The Debtors are currently soliciting acceptances for their Plan, however the hearing on confirmation of the Plan is not until December 19, 2017. The Debtors are entitled to the benefit of an exclusive sixty day period to gain acceptance of their Plan provided it is filed during the exclusive period. The Debtors will not obtain this Bankruptcy Code provided benefit unless the exclusive period of 180 days is extended for the additional thirty days requested. 12. Providing the Debtors with a thirty day extension of §1121(c)(3) pursuant to §1121(d)(1) and (2)(B) is in the best interest of the Debtors and creditors of the estate since it will allow the Debtors an opportunity to resolve issues in the case with creditors, continue to reduce claims which is essential to the voting and distribution process, and work towards confirmation of the Plan."

TerraVia Holdings Plan Filed, Interim Approval Granted

TerraVia Holdings filed with the U.S. Bankruptcy Court a Combined Disclosure Statement and Chapter 11 Plan of Liquidation. According to the Disclosure Statement, "The Combined Disclosure Statement and Plan groups the Debtors together solely for the purposes of describing treatment under the Combined Disclosure Statement and Plan, confirmation of the Combined Disclosure Statement and Plan, and making distributions in accordance with the Combined Disclosure Statement and Plan in respect of Claims against and Interests in the Debtors under the Combined Disclosure Statement and Plan. Notwithstanding such groupings, the Combined Disclosure Statement and Plan constitutes a separate chapter 11 plan of liquidation for each Debtor. The Combined Disclosure Statement and Plan is not premised upon and will not cause the substantive consolidation of any of the Debtors….On the Effective Date, each holder of an Allowed Convenience Claim shall receive, in full satisfaction of its Allowed Convenience Claim, payment in Cash equal to such Allowed Convenience Claim; provided, however, that if the aggregate of all Convenience Claims exceeds the amount in the Convenience Claim Pool, each Class 4 Creditor shall receive its Ratable Share of the Convenience Claim Pool. Class 4 initially shall consist of all General Unsecured Claims that are not Notes Claims that total $20,000 or less. Payment to Class 4 is in lieu of any treatment as a Class 5 Creditor. Any unsecured creditor with a General Unsecured Claim that is not a Notes Claim above $20,000 electing treatment as a Convenience Claim must affirmatively do so on its Class 5 Ballot." The Court subsequently granted interim approval to the Combined Disclosure Statement and Chapter 11 Plan of Liquidation (for solicitation purposes only) and scheduled a January 8, 2018 hearing to consider a final confirmation order, with objections due by December 29, 2017.

21st Century Oncology Holdings Report Filed

21st Century Oncology Holdings' patient care ombudsman filed with the U.S. Bankruptcy Court a third report for the period of September 19, 2017 through November 16, 2017. The ombudsman says, "Based upon what I have observed at the management level and at the nine facilities I have visited in Florida and California, I do not believe that the bankruptcy has negatively impacted operations at the patient level and, if asked, I would continue to recommend 21st Century Oncology to any in need of the cancer care provided at their facilities….It is apparent to me after visiting six facilities in Florida and three facilities in California, in addition to multiple conversations with management and regional VPs, that patient care has not been impacted in any material manner by the bankruptcy cases. Management has done an excellent job of keeping the lines of communication open, proactively engaging with physicians and other employees to allay any concerns and arm them with useful information. Physician and employee retention appears to be stable, the delivery of supplies has not been interrupted, and the facilities continue to have access to state of the art technology for treatment. The physicians and other employees reported no changes that they have observed since the 11 bankruptcy filings. Of course, the sooner that the Debtors can emerge from bankruptcy, the better for all concerned. Not that emergence will improve patient care, which has continued to be at the highest level, but it will remove any cloud of uncertainty, particularly in the view of outsiders with whom certain of the facilities have been in discussion concerning potential synergies and growth opportunities."

Energy Future Holdings Contempt Enforcement Sought

Energy Future Holdings' affiliate Reorganized Texas Competitive Energy Holdings (TCEH) filed with the U.S. Bankruptcy Court a motion for contempt enforcing the October 3, 2017 order and directing the plaintiff to pay the Reorganized TCEH Debtors an award for plaintiff's civil contempt and/or for a portion of the Reorganized TCEH Debtor's costs and attorney's fees incurred in connection with this matter - both amounts to be determined by the Court in its discretion and , if requested, after an in camera review of the relevant professional invoices. The motion explains, "The Reorganized TCEH Debtors will donate any recovery to TXU Energy Aid, which helps approximately 20,000 low income and elderly customers each year with bill-payment assistance to keep their homes powered and safe….To impose a civil contempt order, there must be a showing that (1) a valid order of the court exists, (2) the contemnors had knowledge of the order, and (3) the contemnors disobeyed the order. Significantly, no showing of wilfulness is required to impose civil contempt sanctions….First, there is no question that the Enforcement Order is a valid order of this Court, and the period to appeal has expired. Second, Plaintiff had knowledge of the Enforcement Order because he filed a motion for rehearing. His Counsel, Mr. Ponder, had knowledge of the Enforcement Order because he received three letters about it and had multiple telephone conversations with counsel to the Reorganized TCEH Debtors. Third, Plaintiffs has disobeyed the Enforcement Order. It required the prompt dismissal with prejudice of the non-Experian defendants in the Oklahoma action. Despite 44 days to do so, multiple attempts by the Reorganized TCEH Debtors to resolve it consensually, and the expiration of the period to appeal it, Plaintiff has not compiled with the Enforcement Order….Here, a monetary sanction is appropriate because Plaintiff's wilful disregard of this Court's Enforcement Order has necessitated further litigation - at the expense of this Court and the Reorganized TCEH Debtors. A monetary sanction will also serve as an important reminder and deterrent to those, like Plaintiff, who seek to flout this Court's orders." The Court scheduled a December 11, 2017 hearing to consider the motion, with objections due by November 30, 2017.

Quadrant 4 Systems Bonus Approved

The U.S. Bankruptcy Court approved the motion of Quadrant 4 System's wholly-owned subsidiary, Stratitude, for entry of an order authorizing the Debtor to pay retention bonuses to three key non-insider employees and granting shortened notice in connection therewith. As previously reported, "By this Motion, the Debtor requests the entry of an order authorizing it to pay Retention Bonuses to the Key Employees. In order to insure the Key Employees' willingness to remain under the employ of the Debtor, the Debtor proposes to pay the Retention Bonuses on the earlier of either: (a) the closing of a sale of substantially all assets of the Debtor; or (b) the 90th day after the entry of an order approving this Motion….[E]ach of the Key Employees played an integral role in the Debtor's maintenance and operation prior to the Petition Date and throughout the pendency of the Chapter 11 Case. It is in the Debtor's judgment that the work performed by each of the Key Employees was necessary to preserve the Debtor's going concern value and for the successful solicitation of the Stalking Horse Offer."

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